i have decided to buy a house at the age of 24 and i am currently 21 soon 22 next year at January =)
so can any1 tell me the factors i need to look for before considering to buy a property?
i plan to get a house at RM 250k-300k around klang valley and kuala lumpur, klang valley most preferred is around PJ, subang,Bandar utama, damansara perdana, USJ around those areas ba...
i have no ideas in buying properties so i came here for advices for example:
what do i need to look in to when im buying a property?

thank you for your time =)

I am now 21, I am also plan to get a place before 25. I think the most important thing is you must get the right salary for the installment.

good for ur investment, my fiance also get house, at 24....

I don't think you can get a house new PJ area with the budget of yours.

yes you can,

apartments and some condominiums are around TS's budget

Those hot areas will fetch around RM 450k to RM 1.5M at least. Even my parents' house in Kota Damansara bought at RM 700k fetch RM 1.2M now. I too bought a property at 24 in PJ but only an 1000SF apartment at RM 118k. Problem with such cheap property is that the developer is lousy. Imagine this, the project was stalled midway in 2004. Now it already 2007 and after several lawsuits, they promise to deliver by end of 2007.

scrubiee,

A) Make sure that you can afford the down payment, furniture, renovation and etc.. So, we are talking about at least 30K to 60K of savings.

B) Make sure that you have enough income.

C) Are you married?? If not, you future spouse may force you to move and sell the house.

IMHO, the younger and earlier that you buy a house, you will be in a worst financial situation. In summary, I think it is a BAD IDEA.

Dreamer

This post has been edited by dreamer101: Jul 29 2007, 10:52 AM

then is there an "ideal time" to buy a roof over my head???

olman,

1) You have pay off your car aka no car payment.

2) You can afford a LARGE down payment for the house.

3) You know where you want to live and you found a GOOD DEAL.

4) You are married.

Typically, it is at least 5 years after you started working. To some people, it is 10 years.

Dreamer

oh thank you for your advices =)
haha plan 2 marry by 24 thats why i need a house i have savings now and im learning about investment just bought 400++ worth of investment books yesterday at curve
i started my business and im going to graduate in 1 years time and ill do full time after that and open other businesses as well hope everything goes fine for our future is uncertain hehe!

always remember that what the mind can conceive and believe, you can achieve =)

mind to share wht business are you doing?

wow, buy so many books? buy one by one n read one by one better...

all the best for ur business!!!

u hav 3yrs to save at least 30K for house downpayment n another 30K for renovation n furnitures. !!

Hey buddy,
can introduce what investment books that you bought?
Thanks!

Wahlau leh I jealous ler..u so young can buy house. How much u earning? By the way, I think 400 books does seem to be a lot. Should have bought in batches so that can get some tax redemption every year. If not mistaken there is a max for tax redemption on books.

rm400 books only around 8 books for RM50 each. but propety investment books around rm70-80.. so maybe around 5 books

Say a house for RM300k.
U'll need 10% d/p, RM8k for legal fees, RM20k for basic reno, RM15k for furniture + electrical appliances.
Total up to around RM73k.

Work hard, work smart & save up your pennies. On average u need to save RM25k per year to achieve your goal.

Note: The above figure is based on current market. But building material & land price is constantly increasing. So the house price & renovation cost could be very much different 3 years later.

This post has been edited by scorgio: Jul 30 2007, 12:42 AM

25k/year? wow... need to save at least 2k/month..

now u know WANTED to buy a 300K house n ABLE to buy a 300K house is totally different talk....

Hi dreamer, i think otherwise.

getting into debt early is good, there's good debt and bad debt...

i'd rather see my child spend his salary to service a property loan rather than spend on new mobile phones, expensive clothings, lavish restaurants, sports cars, etc...

TS, if you are a business owner and able to pay a large sum for downpayment, most probably the bank will consider giving you a loan...

if you are a normal wage earner, you need to show your payslip... in general, banks prefer the installment amount to me about 1/3 of your gross salary, some insists on net salary...

say you buy a RM300K prop, you somehow managed to settle the down payment, legal fees and insurance with cash, you will have a clean RM270k loan...
take 20 years tenor@BLR-1.2% you will end up with RM1.8k loan installment...
technically you need to have a basic salary of RM5.4k... at 24, how many can have that kind of constant salary?
another thing to note, property prices don't always go up... check out Bukit Beruntung...

For a 250K house, you will need a minimun of 25K as downpayment. Dont forget to prepare another 10K for the agreement charges. If you are going to apply MRTA for your house, that's another 5K there unless you have good insurance that the bank can accept to give you loan without MRTA. Personally, I dont encourage MRTA.

You will need to do renovation for sure. For condo unit, maybe the renovation is like 15K. But for terrace house, it will cost you like another 30K for very very simple renovation. No extension at all. Assuming your parents will sponsor you the furniture, you need to have 60K CASH ready.

For montly installment, you will likely have to pay average 1.3K every month for 30years. So your basic should be around 4K/month.

Nowadays there is MLTA which is better than MRTA as described by banker. Unlike MRTA, you won't need to pay in lump sum. Furthermore, the coverage of MLTA is not decrease in relative to your loan amount but fixed.

As for renovation works, It all depends on personal preference, some like to renovate in grand manner while others do it in moderate manner.
MAybe I can help you in renovation works, just PM me.

@yewkhuay
hmm.. the sum all seem so big. but i will finance it by selling one of the condo in KK and exchange with one in KL so no worries. hehe.

oh, didn't know u got one condo in KK.....

oh, didn't know u got one condo in KK.....

Kenji1903,

If the person have not pay off the car, the salary requirement will be higher.

Dreamer

hey Dreamer, u said is a bad ideal ? and thus, what do you suggest ? dump all the cash into stock ? you speak somewhow like what a city broker in wall street practised. if not buying a house at young, what age should he/she buy ? when buy a house, is there any age guidelines for better hints ? if everyone keep having this thinking, all the properties market will be so dull. well, i understand it is just your opinions, but, dont you think is sort of bias ?

didn't quite get you here

maybe i am lucky because i'm using my dad's old car, i do not need to buy a car now therefore i put my lump sum into a condo

@yewkhuay
not my condo la.. but my dad's condo. got 2 in KK and 2 landed property in Tawau(sabah) not including my own house. so i plan to sell one of the condo to learn to invest in property.

sell one condo to get cash to learn investment in property ? tht's even higher tactic than buying rm400+ books....

Bkt Beruntung is one great case to show how important marketing is.
Also, how the consumer's blinded when the economy's good.

When Bkt Beruntung was launched, Malaysia's economy was at its peak. Most ppl got spare money in pocket.
Property in Klang Valley blooming. Everyone thinking the outskirt would be the next big thing.

And then the Bkt Beruntung ad, on TV during prime time, newspaper etc. Claiming its 15 minutes drive away from KL via NSE, which is not true.

---

Added on July 31, 2007, 2:03 amWhy u so eager to learn property investment?
It's not like something u can buy today & sell tomorrow.
Just the legal procedure alone would take 4-6 months to complete.

Anyhow, the point of it is similar to other sorts of investments.
See what other people don't see. Buy low sell high.


This post has been edited by scorgio: Jul 31 2007, 02:03 AM

KLIA was supposed to be build near Bukit Beruntung, so some rich guy bought the whole piece of land, developed it and suddenly due to political reasons KLIA's plans was moved to where it is now...

my dad's friend bought one there and can't even sell off at half the price!

well, the outskirts are still a big thing:
1. KL city centre land is too expensive, MK going around RM450-RM600 psf, KLCC around RM750-RM1100 psf
2. less dense and expensive highways to the city makes it a better place to stay, less congestion, slightly better air.
else why would there be so many landed developments in Klang, Shah Alam, Sg. Buloh, Serdang and Rawang?

a6meister,

Have you read carefully?? TS does not have the cash yet. Even if he does, he only has the minimum. And, he probably has not pay off his car yet.

So, do you think it is a GOOD IDEA for a person to buy both car and house and get themselves into serious DEBT HOLE at young age??

Do a person buy a 300K house while still paying for a car?? The person only works for 3 years after graduation. Can a normal person afford this??

Should a person get into this kind of serious DEBT?

<<if not buying a house at young, what age should he/she buy ? when buy a house, is there any age guidelines for better hints ? >>

I had mentioned this before. The best time is after a person pay off their car and had worked for 5 to 10 years. Paying for both car and house at the same time is a serious burden for most people

<<If everyone keep having this thinking, all the properties market will be so dull. >>

Most people do not think this way. And, they ended up paying to the bank for their whole life and making me rich. This is one of reason why most average people are not rich. They spent most of their income on interest that they pay to the bank.

Actually, if people do not listen to my advice, it is better for me. I make more money this way.

Think carefully....

Dreamer

ya...and alot of surprised additional costs might come in way.
And suddenly if u found your buyer is a PR after assuming that he is a Local, more time needed and other cost.
sometimes your house nobody wanna buy.....every year u gotto pay upkeep, utilities and etc.....
ohh..its not easy especially when u in need of money. I think only shd buy if u are very ready or when opportunity arises.

ya. now waiting opportunities to airse. so selling the condo in KK 1st. so can have spare cash when the time comes. anyway, i chose real estate because i'm better off with it than stocks or funds. and it requires less time once you found the right property. unlike stocks which u have to monitor everyday.

Eh.. now is 2007.
Bkt Beruntung time is 1993 (if not mistaken).

Did any purchaser ever envision the property he/she bought would be left vacant for 14 years. No, not even in worst nightmare.

hey guys thank you for the information
hmm business im in is insurance basically a retail financial service provider main product im selling are investment links products and many more, going to do unit trust after my studies
no im not married but i plan 2 marry at 24 so i need a house..

k my future i plan to have a few companies such as event organizers and advertisement company 1st and later on a few more.. insurance is just the start for me 2 pump all my capitals in to these new businesses

i bought a few investment/financial magazines this month and i found my answer about getting a house thank you again guys, these are the 3 magazines i got, Smart Investor(Purchasing home tips), Personal money by the edge and 4E journal
thank you guys for your time it means alot to me, i believe as human beings we need to learn constantly because learning is a never ending process!